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Prepared by Dyna Heng.
Income per capita has tripled in nominal terms during the period.
Uruguay has also made progress in diversifying its sources of foreign direct investment. This chapter focuses on products and market diversification.
The Index is a measure of the dispersion of trade value across an exporter’s products. A county with a preponderance of trade value concentrated in a very few products will have an index value close to 1. Thus, it is an indicator of the exporter’s vulnerability to trade shocks. See Reis and Farole (2012).
The index is calculated as the unit value adjusted for differences in production costs. IMF (2014) explains how quality is measured. The dataset is are available at www.imf.org/external/np/res/dfidimf/diversification.htm.
Quality ladders reflect the extent of heterogeneity in quality across different varieties of a given product. The length of a quality ladder indicates the potential for quality upgrading for each products (IMF 2014).
The Economic Complexity Index is based on two key dimensions: diversity and ubiquity. See Hidalgo and Hausmann (2009) and Hausmann and others (2014) for details on definition and measurement. The Economic Complexity Index is available at http://atlas.media.mit.edu/en/rankings/country/.
VAR includes two lags of GDP growth (in log value) of China, Brazil, Argentina, and Uruguay.
The indicator is calculated as 1- (Uruguay’s ranking/total number of countries). A high ranking value in the WEF survey sample countries means less competitiveness.